HERITAGE FINANCIAL CORP /WA/

Listed Company

HFWACIK 0001046025NasdaqLarge AcceleratedSavings Institutions, Not Federally CharteredWashingtonFY ends Dec 31

Period

FY 2025

Revenue

—

Net Income

$67.53M

Total Assets

$6.97B

Equity

$921.50M

Shares Out

41.13M

Op. Cash Flow

$94.82M

Business

HERITAGE FINANCIAL CORP /WA/ is a bank holding company that plans, directs and coordinates the activities of its sole reportable segment, Heritage Bank, providing commercial community banking services. It offers deposit products, commercial and consumer lending, real estate construction and land development financing, residential mortgage activities, wealth management and business cash management services. Its primary business segments consist of retail banking and commercial lending through Heritage Bank, including a Wealth Management department. The company distributes services via a network of branch offices and digital channels across Washington, the greater Portland and Eugene, Oregon areas, and Boise, Idaho, with FDIC-insured deposits.

Summary from filing dated 2025-02-27

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Interest and fees on loans	263	247	217	174	190
Taxable interest on investment securities	45	55	59	41	17
Nontaxable interest on investment securities	549,000	651,000	2	3	4
Interest on interest earning deposits	6	7	7	9	2
Total interest income	314	310	284	227	213
Deposits	79	75	39	7	6
Junior subordinated debentures	2	2	2	1	742,000
Securities sold under agreement to repurchase	0	0	153,000	138,000	140,000
Borrowings	9	23	18	6,000	0
Total interest expense	90	100	59	8	—
Net interest income	224	209	225	219	206
Provision for credit losses	2	6	4	−1	−29
Net interest income after provision for credit losses	222	203	221	221	235
Loss on sale of investment securities, net	−11	−23	−12	−256,000	29,000
Gain on sale of loans, net	0	26,000	343,000	633,000	4
Interest rate swap fees	496,000	409,000	230,000	402,000	661,000
Bank owned life insurance income	4	3	3	4	3
Gain on sale of other assets, net	8,000	2	2,000	469,000	4
Other income	8	6	8	5	6
Total noninterest income	22	7	19	30	35
Compensation and employee benefits	104	99	100	92	89
Occupancy and equipment	19	19	19	17	17
Data processing	15	15	17	16	17
Marketing	1	988,000	2	2	2
Professional services	4	3	4	2	4
State/municipal business and use taxes	5	5	4	4	4
Federal deposit insurance premium	3	3	3	2	2
Amortization of intangible assets	1	2	2	3	3
Other expense	13	12	14	13	12
Total noninterest expense	166	158	167	151	149
Income before income taxes	79	52	73	99	121
Income tax expense	11	9	11	18	22
Net income	68	43	62	82	98
Basic earnings per common share (in dollars per share)	1.99	1.26	1.76	2.33	2.75
Diluted earnings per common share (in dollars per share)	1.96	1.24	1.75	2.31	2.73
Dividends declared per share (in dollars per share)	0.96	0.92	0.88	0.84	0.81
Average number of basic shares outstanding (in shares)	34	34	35	35	36
Average number of diluted shares outstanding (in shares)	34	35	35	35	36

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash on hand and in banks	53	59	56	74	61
Interest earning deposits	181	58	169	29	1,662
Cash and cash equivalents	233	117	225	104	1,723
Investment securities available for sale, at fair value, net (amortized cost of $647,505 and $835,592, respectively)	608	764	1,134	1,331	—
Investment securities held to maturity, at amortized cost, net (fair value of $625,287 and $623,452, respectively)	674	703	739	766	—
Total investment securities	1,282	1,468	1,874	—	—
Loans receivable	4,783	4,802	4,336	4,051	—
Allowance for credit losses on loans	−53	−52	−48	−43	−42
Loans receivable, net	4,731	4,750	4,288	4,008	—
Premises and equipment, net	75	72	75	77	79
Federal Home Loan Bank stock, at cost	5	22	4	9	8
Bank owned life insurance	106	112	126	122	120
Accrued interest receivable	19	19	20	19	15
Prepaid expenses and other assets	274	303	319	296	184
Other intangible assets, net	2	3	5	7	—
Goodwill	241	241	241	241	241
Total assets	6,967	7,106	7,175	6,980	7,432
Noninterest-Bearing Deposit Liabilities	1,598	1,655	1,716	—	—
Interest-Bearing Deposit Liabilities	4,323	4,030	3,884	—	—
Total deposits	5,920	5,685	5,600	5,925	6,394
Borrowings	20	383	500	0	—
Junior subordinated debentures	22	22	22	22	21
Accrued expenses and other liabilities	83	153	200	189	—
Total liabilities	6,046	6,243	6,322	6,182	6,578
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding, respectively	0	0	0	0	0
Common stock, no par value, 50,000,000 shares authorized; 33,963,500 and 33,990,827 shares issued and outstanding, respectively	531	532	550	552	552
Retained earnings	422	387	376	345	293
Accumulated other comprehensive loss, net	−31	−55	−72	−100	9
Total stockholders equity	922	864	853	798	854
Total liabilities and stockholders equity	6,967	7,106	7,175	6,980	7,432

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Depreciation, amortization and accretion	956,000	2	3	341,000	−22
Provision for credit losses	2	6	4	−1	−29
Stock-based compensation expense	5	4	4	4	4
Tax Credit, Investment, Amortization Cash Flow	25	20	16	—	—
Origination of mortgage loans held for sale	0	−1	−15	−15	−86
Proceeds from sale of mortgage loans held for sale	0	1	15	17	94
Total Deferred tax expense (benefit)	−18	−15	−13	871,000	—
Gain on sale of mortgage loans held for sale, net	0	−26,000	−343,000	−633,000	−4
Loss on sale of investment securities, net	11	23	12	256,000	−29,000
Gain on sale of premises and equipment	0	1	0	403,000	4
Gain on sale of branch	0	0	−610,000	0	0
Other	5	−15	22	9	20
Net cash provided by operating activities	95	64	110	94	70
Loan originations and purchases, net of payments	−22	465	281	225	−699
Maturities and repayments of investment securities available for sale	125	130	179	181	255
Maturities and repayments of investment securities held to maturity	28	35	26	28	1
Purchase of investment securities available for sale	−88	−33	−178	−791	−616
Proceeds from sales of investment securities available for sale	142	274	220	30	1
Purchase of premises and equipment	−9	−3	−10	−4	−3
Proceeds from sales of other loans	0	7	0	2	11
Proceeds from redemption of Federal Home Loan Bank stock	41	48	50	2	0
Purchases of Federal Home Loan Bank stock	−24	−65	−46	−3	−1
Proceeds from sales of premises and equipment	52,000	81,000	78,000	106,000	65,000
Purchases of bank owned life insurance	−136,000	−19	−1	−230,000	−10
Proceeds from bank owned life insurance death benefit	502,000	1	20,000	2	0
Payments for (Proceeds from) Life Insurance Policies	14	30	0	0	—
Capital contributions to tax credit partnerships	−63	−27	−38	−18	−42
Net cash paid related to branch divestiture	0	0	−14	0	—
Net cash provided (used) by investing activities	187	−86	−93	−1,208	164
Net increase (decrease) in deposits	236	85	−310	−469	783
Proceeds from borrowings	536	1,459	1,890	50	0
Repayment of borrowings	899	1,576	1,390	50	0
Common stock cash dividends paid	−33	−32	−31	−29	−29
Net decrease in securities sold under agreement to repurchase	0	0	−47	−4	15
Repurchase of common stock	−6	−22	−7	−3	−23
Net cash (used) provided by financing activities	−166	−86	105	−506	747
Net increase (decrease) in cash and cash equivalents	116	−108	121	−1,620	980
Cash paid for interest	90	112	46	8	7
Cash paid for income taxes, net of refunds	3	2	3	5	10
Investment in LIHTC partnerships and related funding commitment	326,000	100,000	37	86	30
ROU assets obtained in exchange for new operating lease liabilities	4	4	7	3	14
Transfers of premises and equipment classified as held for sale to prepaid expenses and other assets from premises and equipment, net	93,000	0	6	910,000	4
Transfer of Bank Owned Life Insurance To Prepaid Expenses And Other Assets Due to Surrender	0	5	0	0	—
Transfer of bank owned life insurance to prepaid expenses and other assets due to death benefit accrued, but not received	759,000	0	700,000	0	0

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